Secrets of ‘Self Insuring’

For most of us, we just would not feel secure without an insurance policy that covered most of our assets, our health, and our lives. However, there is a growing trend, especially among middle to upper income earners, to eschew this type of formalized insurance, and manage their own insurance fund. The idea behind this trend is simple. Every month, you pay hundreds, if not thousands of dollars (depending on the value of your assets) to an insurance house, on the off chance that one day, you will need to claim. If you are financially secure enough to afford to take the risk, it is in theory possible to rather invest that money, either in a savings account or another easily accessible investment, and thereby allow your money to grow, rather than making insurers rich. It is a large risk, but if you understand that risk, and can afford to take it, it's a great way to get more money in your savings and investment accounts.